Product Attributes

Power restrictions and production shutdowns! ST Microelectronics, Xilinx, and other companies issue price increase notices

Since the beginning of September 2021, Jiangsu Province began to carry out strict “double control of energy consumption”, followed by Guangdong Province to follow up on the power restrictions and quickly spread to Yunnan, Guangxi, Zhejiang, and other places. This was followed by rumors that the production of manufacturers such as Tesla, Sunrise, and Global Wafer was affected to varying degrees.

It is worth noting that recently, STMicroelectronics, Xilinx, and other manufacturers have announced price increases of up to 30%.

What is the impact of the power cut?

Recently, the Internet exposed a notice from the Sunbeam Kunshan plant issued by the power shutdown.

According to the notice, the Sunbeam Kunshan plant will be restricted from 8 pm on 26 September to 24 pm on 30 September 2021. In the meantime, after negotiations with government authorities, a day has been secured to complete the production of products that are being operated on the machine.

According to the news, Rayson Group said that in line with the local government’s power restriction policy, early shipments have been arranged and the impact on customers and Rayson’s Kunshan plant will be limited.

Global Wafer, which is also located in Kunshan, has also temporarily lowered its output due to cooperation with Suzhou’s power restriction policy, and the Kunshan plant is expected to be shut down until September 30. The company will coordinate with other plants in the Group to provide support to assist in production and delivery matters.

In addition, several manufacturers in Suzhou, such as KYEC, Kunshan Nandina, Xinxing, AUO, and Kunshan Guangxing Electronics, have also adjusted their production to varying degrees due to the power restriction policy, which does not appear to have had a significant impact for the time being.

On September 27, ST STMicroelectronics issued its third price increase notice of the year. The company said that the current shortage in the semiconductor supply chain continues to seriously affect the industry, with no signs of short-term recovery. With the increased availability of some key supplies in the supply chain, coupled with the company’s strong investment in manufacturing, ST will increase prices on all products, including existing inventory, in the last quarter (Q4) of 2021.

ST’s MCU range is scarce and expensive in the market. After this round of price increases, the scarcity of chip products may be even higher.

For Xilinx, the company has increased prices for all current and future orders, all offers, and all shipments on and after November 1, 2021. Products affected by the increase are a 10 percent increase for all VersalM families; and a 20 percent increase for all other products.

In September, ON Semiconductor issued a second round of price increase letters indicating price increases for some products, which will take effect in early October, and the new prices will apply to new orders and existing backlog orders.

Since this year, ON Semiconductor’s power management ICs, IGBTs, Mosfet and other products have lengthened delivery periods across the board, while diodes, transistors, optocouplers, CMOS sensors, and other products have also experienced a certain degree of shortage, with delivery periods for some of its products already reaching 52 weeks.

The most recent price increase is by MediaTek, which plans to increase the prices of some of its chip solutions from November 1, especially for Wi-Fi solutions including the MT7668 and MT7663 series, by up to 30%.

In addition, many other manufacturers have price adjustments of varying degrees.

Molex: Increase of more than 7 percent on 1 October.

Renesas: 15% increase on 1 October.

Broadcom: 20% increase from October.

XANGSHUO: 20% increase for the entire product line from January next year.

Xinghua: further increase in the 4th quarter.

Unitech: increase in SoC prices by about 10-20%.

Chang Hwa Electric Material: an increase of 8%-25%.

Yushun Technology: full line of products is to be increased from September 22